Manufacturing recovers ground in January: GDP up 0.2 per cent

The Canadian economy grew by 0.2 per cent in January, recovering from a decline of the same amount in December, Statistics Canada reports. Manufacturing was the largest contributor to the growth, but output from the service sector expanded also. Agriculture, forestry and construction sectors shrank.


After a decline of 1.9 per cent in December, manufacturing output expanded 1.2 per cent in January. Growth in durable goods production was broadly based, with notable gains in fabricated metal products and wood products manufacturing. Transportation equipment manufacturing, however, decreased. Non-durable goods production was also up, with growth in beverage and tobacco products, plastics and rubber products, as well as printing and related support activities. This growth outweighed declines recorded by manufacturers of chemical and of petroleum and coal products.

Mining, quarrying and oil and gas extraction also increased, as did the service industries, mainly as a result of gains in wholesale trade, arts and entertainment, and the public sector (education, health and public administration combined). On the other hand, the finance and insurance sector and transportation and warehousing services were down.

Wholesale trade rose, with increases in personal and household goods and of machinery, equipment and supplies leading the gain. Motor vehicles and parts, however, declined.

Construction edged down 0.1 per cent, a decline in residential building construction outweighing increases in non-residential building, engineering and repair construction.

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